By Boluwatife Oshadiya | August 21, 2026
Key Points
- Federal Government signs a sub-lease agreement with Premium Steel and Mines Limited to revive Delta Steel Company
- PSML commits more than $1.3 billion to raw materials, rehabilitation and modernisation of the plant
- Government expects the project to restore one million tonnes of annual liquid steel production and create thousands of jobs
Main Story
The Federal Government has signed a sub-lease agreement with Premium Steel and Mines Limited (PSML) to restore and fully operationalise the former Delta Steel Company at Ovwian-Aladja, Delta State.
The agreement between the National Iron Ore Mining Company (NIOMCO), Itakpe, and PSML will support the rehabilitation of the integrated steel plant and strengthen Nigeria’s domestic steel production capacity, according to a statement from the Federal Ministry of Steel Development.
Minister of Steel Development, Shuaibu Audu, said PSML had committed more than $1.3 billion to raw materials exploration and exploitation, plant rehabilitation and modernisation.
The investment is expected to return the plant to its designed capacity of one million metric tonnes of liquid steel annually. The Federal Government also expects commercial operations to commence within 18 to 24 months, subject to sustainable iron ore supply.
Audu said the agreement would also support the reactivation of NIOMCO and the development of the Ajabanoko iron ore deposits, linking the steel plant’s revival to domestic raw-material supply.
The minister said the project is expected to create about 5,000 direct jobs and more than 20,000 indirect jobs, while supporting Nigeria’s target of producing 10 million tonnes of liquid steel annually by 2030.
The Federal Ministry of Steel Development has previously identified PSML, formerly Delta Steel Company, as a strategic asset in efforts to revitalise Nigeria’s steel industry. In May 2025, the ministry said the government was working with PSML management to facilitate the plant’s return to full commercial operation.
What’s Being Said
“The revival of Delta Steel Company is not merely about bringing an old industrial facility back to life. It is about restoring Nigeria’s capacity to produce steel locally, creating opportunities for our young people, supporting downstream industries and strengthening the foundation for sustainable industrialisation.” — Shuaibu Audu, Minister of Steel Development.
The ministry said reliable access to iron ore, dependable power, logistics and supporting infrastructure would be critical to the success of the project.
What’s Next
- PSML is expected to undertake raw-material exploration and exploitation alongside rehabilitation and modernisation of the steel plant
- Commercial operations are targeted within 18 to 24 months, subject to sustainable iron ore supply
- The government expects the project to support the reactivation of NIOMCO and the development of the Ajabanoko iron ore deposits
Bottom Line
The Bottom Line: The agreement places raw-material supply, plant rehabilitation and infrastructure at the centre of efforts to restore Delta Steel’s integrated production capacity. If the investment and supply commitments are delivered as planned, the project could strengthen domestic steel production while reducing Nigeria’s reliance on imported steel products.
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